Can I avoid paying taxes on a 401k withdrawl?


Posted February 27th, 2009 by admin 6 Comments »
401k withdrawl
ihatevfsf asked:


I’m refinancing one of my investment properties and i want to know if i do a 401k withdrawal but use that money towards paying for the closing costs and paying down the principal balance on the investment property. I know I will be subject to the IRS 10% penalty however can i deduct the amount paid to reduce principal and cover closing costs.

Tags: , ,
Posted in Investing | 6 Comments »

How do you take out an early 401k withdrawal?


Posted February 24th, 2009 by admin 7 Comments »
401k
Jen asked:


I see all over the internet people mentioning cashing in their 401k early to pay off debt. I just tried to do that exact same thing, yet according to my representative, (who put me on hold to verify with someone else) there is not one single legal way I can cash in my 401k early without qualifying for a Hardship Withdrawal and providing proof from a very limited list of acceptable documents for them to investigate.

Which is the truth here: Have people closed out their 401k early to pay off debt, or is there no legal way to do so?

Tags: , ,
Posted in Personal Finance | 7 Comments »